In 2005 the IRS posted an article saying that, “Over 100 million employees have too much money taken from their paychecks due to taxes.” The article also went on to say that people would be better off modifying their withholding taxes to get the extra cashflow upfront and use it for investing or debt elimination. The report was one of the most eye-opening documents ever distributing by the IRS. When I was in the streets, I always wanted to find the plug. Never would I be satisfied by shopping with the middle man and getting taxed when I knew the plug had it for way cheaper. I take the same approach in the business world. I’m always going to bypass the middle man, that’s just how i operate. A lot of people are okay with going through the middle man, and if you’re one of those people, you can stop reading right now. In this article I am going to give you some practice solutions to your debt and tax problems. Strategies that I myself have mastered and now I am putting them to use in my personal life, and showing others how they can benefit from following proven strategies and systems for building wealth.
Anytime I approach any situation, frameworks and models is what I look for. When I approach finances the framework I operate in has three steps: Cashflow Management, Business Income, and Investment Income. These three strategies are fundamental for building wealth.
Like I just mentioned, I deal with strategies. What this means is every step I take has a strategic plan behind it. On my journey I discovered the power of making my lifestyle tax-deductible and I could save thousands per year when I file my taxes. Taxes and debt are the biggest expense most americans have, so why wouldn’t I pay special attention to these two key areas. What I discovered in my search for economic freedom is that all I had to do was open up a home-based business and I could easily manipulate the system. When you pay attention to how much money you lose all year that is easily preventable, you will be ashamed of yourself. Before I get into these strategies, I just want to say that, you make enough money on your job, even tho you may think otherwise, you just have to learn how to take your money back from the people who are taking it from you.
The first thing we will look at is Cashflow Management. Three things have to go down in order for your cashflow to go up. Most people lose way to much money on their jobs due to their W-4 being filled out wrong. With the correct knowledge I put $200 to 1,000 a month back in people’s pocket. That’s the easy part. The hard part is what to do with the extra money. Now what the average person will do is just get in more debt, and put themselves in an even bigger hole financially. That is what I call a less than ideal cash flow management decision. The ideal cash flow management decision would be to put that money to work at eliminating debt. Think of how much extra money you would have right now if you didn’t have to make payments on the debt that you owe. It really is jaw dropping when you think about it. Making smart cash flow decisions doesn’t just happen overnight. You have to have a shift in your mindset. You have to want to do better. Nobody can make you do anything with your money, only you can do that. People can show you what to do all day, but it is up to you to take action. Once your taxes and debt are minimized, then we move onto minimizing expenses. To minimize expenses is to simply make smart purchases. All these strategies requires a little discipline and will power to get going, but once you get going it all becomes easier. People complaining about not making enough money are kinda funny to me, because knowledge can save your life. You are getting robbed in broad daylight and don’t even know what is taking place. Getting robbed in the form of taxes and unnecessary debt is no laughing matter once you know better.
The second strategy I use is generating business income. You can adjust your W-4, minimize your debt, and minimize your expenses to create extra cashflow, but if you are like me and want to speed up the process, you need to add some extra money period to your wallet. Generating business income is a greatest and fasting way to eliminate debt and proceed to strategy number three. How do you create business income? Easy, get plugged into a system like myEcon and start teaching others what you learn. If your only form of income comes from a W-2 then you are getting robbed in broad daylight. W-2 is the highest form of taxes to pay. Save yourself some money by generating 1099 income. Business income is the gasoline you can put on your financial fire. It’s no exaggerating when I say gasoline either, I mean that literally.
The third strategy is generate investment income. Every thinks that investing is hard, but it’s really not. Investing really boils down into two things: Terminology & Perspective. In my framework there are three different things you need to learn about investing. The three things you need to know about when investing is: Capital Gains, Dividends, and Yourself. What is a capital gain? A capital gain is the profit from the sale of property, or of an investment. Capital gains aren’t just for rich people. The average individual can access capital gain money if they learn the basics about investing. Dividends is a sum of money paid regularly to its shareholders out of its profits. Dividends are nice because it doesn’t require any effort on your part. Its like you give someone $500 and they pay you $75 a month for the rest of your life. Investing is all about knowledge. Knowledge is your biggest tool when investing. If you don’t know anything, you most likely won’t reap the benefits. The third thing you need to know about stocks is YOURSELF. You can’t commit to excellence until your mind is ready to take you there. You are your first and biggest resource. Capital gains and dividends are great, but with business income your ROI (return on investment) can go through the roof. Focus on your business first and the investment will take care of themselves, trust me.
Getting robbed in broad daylight isn’t fun. Take a closer look at your finances and get serious about building wealth. It is enough to go around. Imagine your children growing up and having to beg another person for a job, when you could be showing them how to employee themselves and possibly others. We need more builders in America. We need more leaders. Education is a wonderful thing. Time is the master teacher, but oftentimes to many of us waste to much of it everyday. Give your kids something to work with and don’t let them be an indentured servant to a system that they don’t have to be.
click the link to learn more and send me an email so we can connect and talk more: myecon